P2E gaming did not get recognised due the factor that their graphics and game speed is not that good enough in the current times. People are interested is playing high graphic games, even mobile gaming is now going through a phase where some games have graphics like console games. Unless these P2E games work in improving their graphics and game play they won't see much adoption.
That's not entirely true, how come Axie Infinity that doesn't have the best of the graphics out there were able to do the impossible and became a big hype in the crypto community? There were other games that were up to your said standards in terms of graphics but they weren't able to make the same popularity and longevity that Axie Infinity had, even though they're not as big as they were back in 2022, they still have a player base that's still playing the game so I'd say that it's not the graphics that would matter the most, it's probably something else, maybe the community of the game that's making sure that the P2E game would have the staying power.